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Connecting Cities with Macroeconomic Concerns : The Missing Link

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  • Mila Freire
  • Mario Polèse
  • Pamela Echeverria
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    Abstract

    Urban growth is, in all parts of the world, inevitable and welcomed. Despite concerns that local governments will not be able to address those issues associated with increased urban population, the number of people living in urban centers will sur-pass those of the rural population by 2030. Since productivity levels are consistently higher in urban areas than in rural settings, this would seem a reason to rejoice since it suggests more people with higher salaries, better standards of living, and less poverty. But will this be the reality, or will the nightmare of hopeless poverty overshadow the positive feelings of economic wealth and progress? This disjunction between the wonders of the city and the horrors facing the homeless poor is at the core of any professional work on economic development and urban management issues. On one hand, everyone agrees that cities are wonderful instruments of change, culture, motivation and progress. Cities are also at the core of democratic progress. Local government elections offer a laboratory in which citizens can exercise their rights to political action. The importance of cities throughout human civilization is well demonstrated by the protection they enjoyed during humanity's most violent periods, and this often at the expense of the rural sector. On the other hand, cities are often unable to adequately answer to the needs of newcomers. Deficits in housing, water and sanitation have an immediate impact on environmental degradation, health indicators, child mortality, and the self-esteem of city inhabitants. City managers and mayors must deal with this disjunction, and make decisions without adequate resources. They face challenges that range from shrewdly handling municipal finances, to providing extended services in an effort to reach the poor.

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    Bibliographic Info

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    This book is provided by The World Bank in its series World Bank Publications with number 15058 and published in 2003.

    ISBN: 0-8213-5673-9
    Handle: RePEc:wbk:wbpubs:15058

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    Postal: 1818 H Street, N.W., Washington, DC 20433
    Phone: (202) 477-1234
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    Related research

    Keywords: Urban Development - City Development Strategies Communities and Human Settlements - Urban Housing and Land Settlements National Urban Development Policies and Strategies Urban Development - Municipal Financial Management Urban Development - Urban Services to the Poor;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers, National Bureau of Economic Research, Inc 3905, National Bureau of Economic Research, Inc.
    2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers, National Bureau of Economic Research, Inc 7771, National Bureau of Economic Research, Inc.
    3. Lall, Somik & Shalizi, Zmarak & Deichmann, Uwe, 2001. "Agglomeration economies and productivity in Indian industry," Policy Research Working Paper Series, The World Bank 2663, The World Bank.
    4. Kyu Sik Lee & Anas, Alex & Gi-Taik Oh, 1996. "Costs of infrastructure deficiencies in manufacturing in Indonesia, Nigeria, and Thailand," Policy Research Working Paper Series, The World Bank 1604, The World Bank.
    5. Kyu Sik Lee & Anas, Alex, 1989. "Manufacturers'responses to infrastructure deficiencies in Nigeria : private alternatives and policy options," Policy Research Working Paper Series, The World Bank 325, The World Bank.
    6. Catherine J. Morrison & Amy Ellen Schwartz, 1992. "State Infrastructure and Productive Performance," NBER Working Papers, National Bureau of Economic Research, Inc 3981, National Bureau of Economic Research, Inc.
    7. Jess Gaspar & Edward Glaeser, 1996. "Information Technology and the Future of Cities," NBER Working Papers, National Bureau of Economic Research, Inc 5562, National Bureau of Economic Research, Inc.
    8. Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 6(4), pages 189-198, Fall.
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    10. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 23(2), pages 177-200, March.
    11. Nadiri, M. Ishaq & Mamuneas, Theofanis P., 1991. "The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries," Working Papers, C.V. Starr Center for Applied Economics, New York University 91-57, C.V. Starr Center for Applied Economics, New York University.
    12. David Aschauer, 1998. "Public Capital and Economic Growth: Issues of Quantity, Finance, and Efficiency," Macroeconomics, EconWPA 9805016, EconWPA.
    13. John M. Quigley, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 127-138, Spring.
    14. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 630-40, June.
    15. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 12(3), pages 17-25, Autumn.
    16. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers, National Bureau of Economic Research, Inc 3275, National Bureau of Economic Research, Inc.
    17. Bjorvatn, Kjetil, 2000. "Urban Infrastructure and Industrialization," Journal of Urban Economics, Elsevier, Elsevier, vol. 48(2), pages 205-218, September.
    18. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 139-160, Spring.
    19. Wang, Eric C., 2002. "Public infrastructure and economic growth: a new approach applied to East Asian economies," Journal of Policy Modeling, Elsevier, Elsevier, vol. 24(5), pages 411-435, August.
    20. Denis MAILLAT, 1998. "From the industrial district to the innovative milieu : Contribution to an analysis of territorialised productive organisations," Discussion Papers (REL - Recherches Economiques de Louvain), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 1998017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    22. Reinikka, Ritva & Svensson, Jakob, 1999. "How inadequate provision of public infrastructure and services affects private investment," Policy Research Working Paper Series, The World Bank 2262, The World Bank.
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    Citations

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    Cited by:
    1. Stephanié Rossouw & Gail Pacheco, 2012. "Measuring Non-Economic Quality of Life on a Sub-National Level: A Case Study of New Zealand," Journal of Happiness Studies, Springer, Springer, vol. 13(3), pages 439-454, June.
    2. Tuan, Chyau & Ng, Linda F. Y., 2004. "Manufacturing agglomeration as incentives to Asian FDI in China after WTO," Journal of Asian Economics, Elsevier, Elsevier, vol. 15(4), pages 673-693, August.

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